RXR, Macquarie and QIA invest $261m of preferred equity in NYC multifamily

Real estate developer RXR, Macquarie Capital Principal Finance and the Qatar Investment Authority (QIA) have made a $261m (€248m) preferred equity investment in a multifamily portfolio in New York City.

The three class-A buildings contain 858 residential units and were constructed and owned by developer Sheldon Solow who died in 2020.

One & Two Sutton Place and One East River Place include floor-to-ceiling windows, large units and luxury amenities, including doormen, fitness centres and indoor pools.

The preferred equity investment was used to finance GO Partners, a joint venture between Black Spruce Management and Orbach Affordable Housing Solutions, in the acquisition of the portfolio.

“With decades of experience in structuring finance investments, RXR was able to provide an efficient financing solution for GO Partners in an accelerated timeline during a period where financing for such acquisitions and developments has been increasingly difficult to obtain,” said Russell Young, executive vice President of RXR’s investment management group.

Thomas Dore, vice president at Macquarie Capital Principal Finance, said: “Macquarie Capital Principal Finance acted nimbly alongside RXR to structure a creative financing package, despite challenging market conditions.

“We look forward to seeking more opportunities to deploy preferred equity consistent with our strategy of investing in best-in-class assets.”

QIA is investing through its wholly-owned subsidiary QH RE Asset Company.

Hudson Realty Capital advised on the deal and Cushman & Wakefield served as the broker.

“We were pleased to help facilitate a complicated closing process on behalf of RXR and its lending partners,” said Perry Freitas, managing director at Hudson Realty Capital.

“Our deep market experience and hands-on approach is extremely valuable in market conditions such as these, when it is increasingly difficult to get transactions across the finish line.”

The buildings are more than 96% occupied and located within Manhattan’s Upper East Side, one of the city’s most supply-constrained and in-demand residential neighbourhoods.

“The Solow Portfolio consists of some of Manhattan’s most sought-after assets and has been long treasured by the investment community,” said Adam Spies, chairman of Cushman & Wakefield.